Katapult Holdings receives waiver for loan agreement default
#Katapult Holdings #Loan agreement default #Eighth Limited Waiver #Financial covenant #Stock decline #Merger #Aaron's Company #CCF Holdings
📌 Key Takeaways
- Katapult Holdings received Eighth Limited Waiver from lenders after covenant breach
- Company faces significant financial headwinds with current ratio of 0.58
- Stock has declined 59% over past six months to $6.16
- Company plans merger with Aaron's Company and CCF Holdings
- Merger expected to create integrated platform for non-prime consumers
📖 Full Retelling
Katapult Holdings, Inc. (NASDAQ:KPLT) disclosed on February 13, 2026 that it had received a limited waiver from its lenders after failing to meet the minimum trailing three-month net originations requirement as specified in its loan agreement, avoiding a potential default situation. The waiver, officially termed the Eighth Limited Waiver, permanently addresses the default associated with this covenant breach and involves Katapult SPV-1 LLC, Katapult Group, Inc., Midtown Madison Management LLC as administrative, payment and collateral agent and lender, along with other lenders. This development was reported in a press release statement filed with the Securities and Exchange Commission. The waiver comes as the company faces significant financial headwinds, with InvestingPro data showing Katapult is quickly burning through cash with a current ratio of just 0.58, indicating short-term obligations exceed liquid assets. The company's stock has declined 59% over the past six months, currently trading at $6.16 with a modest market cap of $29 million. Additionally, Katapult Holdings revealed plans to merge with The Aaron's Company, Inc. and CCF Holdings LLC in an all-stock transaction that will create an integrated platform serving non-prime consumers, with current Katapult stockholders owning 6% of the newly combined entity, while the transaction is anticipated to close in the first half of 2026.
🏷️ Themes
Financial covenants, Corporate restructuring, Market performance
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try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry $100+ oil back in play if Hormuz disruption worsens: analysts Middle East tensions rise as Iran promises retaliation Wait for a 10% drop in the S&P 500 before buying the dip, Barclays says U.S. dollar seen strengthening as U.S.-Israel strikes intensify (South Africa Philippines Nigeria) Katapult Holdings receives waiver for loan agreement default By Investing.com SEC Filings Published 03/01/2026, 09:23 AM Katapult Holdings receives waiver for loan agreement default 0 KPLT -3.75% KPLTW -15.00% Katapult Holdings, Inc. (NASDAQ:KPLT) disclosed that on February 13, 2026, it entered into a limited waiver with its lenders related to its Amended and Restated Loan and Security Agreement. The waiver, termed the Eighth Limited Waiver, was granted after Katapult and its affiliates did not meet the minimum trailing three-month net originations requirement as of January 31, 2026, as specified in the loan agreement.The covenant breach comes as the company faces significant financial headwinds. According to InvestingPro data, Katapult is quickly burning through cash with a current ratio of just 0.58, indicating short-term obligations exceed liquid assets. The stock has declined 59% over the past six months, trading at $6.16 with a modest market cap of $29 million. The waiver permanently addresses the default associated with this covenant breach. The agreement involves Katapult SPV-1 LLC, Katapult Group, Inc., Midtown Madison Management LLC as administrative, payment and collateral agent and lender, and other lenders. This development was reported in a press release statement filed with the Securities and Exchange Commission. Katapult Holdings’ common stock and redeemable warrants are listed on The Nasdaq Stock Market LLC under the symbols KPLT and KPLTW , respectively. In other recent news, Katapult Holdings , Inc. announced its financial developments and strategic moves. The company disclosed that it has received a waiver f...
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